The Call Loan Market in the U.S. Financial System Prior to the Federal Reserve System

FRB of Atlanta Working Paper No. 2003-43

31 Pages Posted: 10 Feb 2004

See all articles by Jon R. Moen

Jon R. Moen

University of Mississippi - Department of Economics

Ellis W. Tallman

Federal Reserve Banks - Federal Reserve Bank of Cleveland

Date Written: December 2003

Abstract

The call loan market in New York City played a central role in funding the expansion of economic growth and capital investment in the United States in the late 1800s and early 1900s. Changes in the identity of the intermediaries providing those funds help explain why the movement for the establishment of a central bank in the United States took hold only after the panic of 1907. The growing significance of nonclearinghouse creditors to the call money market diluted the relative financial influence of the New York City bankers and compromised the apparent "coinsurance" arrangement between brokers and New York Clearinghouse lenders that prevailed during the late nineteenth century.

Keywords: Financial crisis, unit banking, correspondent banking

JEL Classification: N21, N41

Suggested Citation

Moen, Jon R. and Tallman, Ellis W., The Call Loan Market in the U.S. Financial System Prior to the Federal Reserve System (December 2003). FRB of Atlanta Working Paper No. 2003-43, Available at SSRN: https://ssrn.com/abstract=498762 or http://dx.doi.org/10.2139/ssrn.498762

Jon R. Moen

University of Mississippi - Department of Economics ( email )

371 Holman Hall
University, MS 38677
United States

Ellis W. Tallman (Contact Author)

Federal Reserve Banks - Federal Reserve Bank of Cleveland ( email )

East 6th & Superior
Cleveland, OH 44101-1387
United States

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